How does drift trade work?

Trades conducted on Drift are facilitated by a comprehensive liquidity framework that ensures seamless and efficient transactions. At the forefront of this system is the Just-in-Time (JIT) Auction Liquidity, a dynamic mechanism designed to inject liquidity into the market just before each trade takes place.

The JIT Auction Liquidity is powered by market makers who strategically position themselves to provide the necessary liquidity for upcoming transactions. This proactive approach ensures that traders have access to ample liquidity, even during periods of high demand or volatility.

BTCC's spot trading platform provides traders with direct access to various cryptocurrency pairs, enabling them to execute trades with ease and confidence. Furthermore, the exchange's futures trading platform offers traders the opportunity to hedge their positions or speculate on future price movements, adding an extra layer of flexibility to their trading strategies.

Complementing the JIT Auction Liquidity is the Limit Orderbook Liquidity, a fundamental component of Drift's trading ecosystem. This liquidity source stems from our decentralised orderbook (DLOB), a robust and transparent platform that hosts limit orders placed by market makers.

The DLOB is a cornerstone of Drift's liquidity infrastructure, allowing takers to seamlessly execute trades against the limit orders placed by makers. This decentralised structure fosters competition among market participants, ultimately leading to tighter spreads and improved trading conditions.